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Dec 31, 2023
Metallus Q4 2023 Earnings Report
Metallus reported mixed results for Q4 2023, with a decrease in net sales compared to the previous quarter but an increase compared to the same quarter last year, alongside a slight net income.
Key Takeaways
Metallus reported Q4 2023 net sales of $328.1 million and a net income of $1.3 million, or $0.03 per diluted share. Adjusted net income was $16.5 million, or $0.36 per diluted share, and adjusted EBITDA was $35.7 million. The company saw a decrease in net sales compared to the previous quarter, but an increase compared to Q4 2022.
Net sales reached $328.1 million, a 7% decrease sequentially but a 34% increase year-over-year.
Net income was $1.3 million, or $0.03 per diluted share.
Adjusted net income stood at $16.5 million, or $0.36 per diluted share.
Operating cash flow totaled $74.1 million driven by profitability and lower working capital.
Revenue by Segment
Forward Guidance
The company expects first-quarter 2024 adjusted EBITDA to be slightly lower than the fourth quarter of 2023.
Positive Outlook
- First-quarter shipments are expected to be slightly lower than the fourth quarter of 2023 with continued strength in aerospace & defense demand.
- Lead times for bar products currently extend to April and tube product lead times extend to May.
- Annual price agreement negotiations covering approximately 65 percent of the order book are complete with 2024 average base price per ton for customers covered by annual agreements expected to be similar to average base price per ton for the full-year 2023, mix dependent.
- Surcharge revenue per ton is expected to be sequentially higher in the first quarter.
- Manufacturing costs are expected to sequentially decline in the first quarter given the completion of approximately $10 million of annual melt shop shutdown maintenance in the fourth quarter of 2023.
Challenges Ahead
- Price/mix is expected to be unfavorable on a sequential basis in the first quarter given that the fourth quarter of 2023 included approximately $11 million of full-year retroactive price increases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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